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HomeMy WebLinkAbout07 - Amendment to M/RSA for Landscape Maintenance of Medians and Roadsides (Contract No. 8651-1)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 27, 2023 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Kevin Pekar, Parks & Trees Superintendent kpekar@newportbeachca.gov PHONE: 949-644-3069 TITLE: Approval of Amendment No. One to Maintenance and Repair Services Agreement for Landscape Maintenance of Medians and Roadsides with BrightView Landscape Services, Inc. (Contract No. 8651-1) ABSTRACT: The City of Newport Beach (City) utilizes contract services to perform landscape maintenance of median and roadside areas throughout the City. The contractor also performs on -call services, such as emergency storm response, traffic accident repairs, irrigation part replacement, plant replacement, landscape enhancement, City street tree planting, and other on -call services. As a result of higher than anticipated ongoing maintenance needs, staff requests an increase to the fixed -maintenance portion of the contract by $131,750 annually for four and half years plus CPI for a total fixed - maintenance not -to -exceed (NTE) amount of $14,869,688. Additionally, due to a higher level of on -call work that has already taken place, as well as anticipated work throughout the remainder of the contract term, staff requests an increase to the on -call portion of the contract by $2,280,000 for a new on -call NTE amount of $4,380,068. The amendment would raise the total overall contract NTE from $16,350,000 to $19,249,756 for the seven- year term of the contract. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to the Maintenance and Repair Services Agreement with BrightView Landscape Services, Inc. (BrightView) for Landscape Maintenance of Medians and Roadsides to increase the contract fixed -maintenance not -to -exceed amount by $131,750 annually for four and half years plus CPI for a total fixed - maintenance not -to -exceed amount of $14,869,688; and increase the on -call portion of the contract by $2,280,000 for a new on -call NTE amount of $4,380,068, and authorize the Mayor and City Clerk to sign the amendment. The amendment would raise the total overall contract NTE from $16,350,000 to $19,249,756. 7-1 Approval of Amendment No. One to Maintenance and Repair Services Agreement for Landscape Maintenance of Medians and Roadsides with BrightView Landscape Services, Inc. (Contract No. 8651-1) June 27, 2023 Page 2 DISCUSSION: The City maintains over 265 acres of medians and roadsides landscape through contract services. Some examples of the sites maintained include vast landscape slopes in Newport Coast, the landscape and hardscape areas in the Newport Pier and Balboa Pier parking lots, Balboa Village, Coast Highway medians from the Santa Ana River to Pelican Point, Newport Coast Community Center, and Oasis Senior Center. Landscape maintenance activities include lawn mowing and care; trimming of groundcover and shrubs; irrigation monitoring, repairs and adjustments; small tree maintenance; refuse policing; weed control; and other related duties. The current, seven-year contract with BrightView was entered into on December 1, 2020, at a total NTE of $16,350,000, which covered both the annual fixed -maintenance and on - call work. With regard to the fixed -maintenance portion, staff is finding that the minimum manpower of 35 employees is not sufficient to keep up with the level and frequency of maintenance desired. Thus, staff negotiated with Brightview, using contract labor rates, to develop an additional two -person, targeted maintenance crew in order to enhance maintenance and increase the frequency with which sites are serviced. The crew, which includes a truck, will cost approximately $131,750 per year. This proposed crew would be used full time for the remaining 4.5 years of the contract. Additionally, the on -call portion of the contract was initially set at an NTE of $2,100,068, or approximately $300,000 per year. Typical on -call services performed are emergency storm response, traffic accident repairs, irrigation part replacements, unforeseen plant replacements, landscape enhancements, City street tree plantings, clean-ups, repairs, and plantings due to vandalism. BrightView has been utilized for many more unanticipated on -call services throughout the initial years of the contract. For example, traffic accidents on the City's medians are on the rise, which require significant repairs and replacements of plants, trees and irrigation equipment. With the unprecedented storms this last year, staff called on BrightView to assist with emergency storm response services including beach sand clean-up at Newport Pier Plaza and beach -adjacent street ends. Replacement plant material and the cost of irrigation parts for repairs has increased through inflation and supply chain issues, resulting in costly on -call expenditures. Brightview also assisted with several needed re -sodding jobs, including a sizeable athletic field renovation at Bob Henry Park. The most substantial on -call expense incurred over the past several years has been landscape enhancement work, which arises as individual, unplanned, but needed projects that are too small for the City's typical Capital Improvement Program, but large enough to have an impact on the on -call NTE contract. One particular project undertaken was the MacArthur Boulevard slope renovation that included clearing old landscape, retrofitting irrigation, and planting over an acre of new plants. Another project on Anniversary Lane, entailed adding two new meters and irrigation to a roadside landscape area that used to be irrigated by a water truck. Just recently, BrightView completed installing new irrigation and native landscaping to the Bayside Drive landscape below Fernleaf Ramp. As a result of the many projects, the on -call portion is now already fully utilized. 7-2 Approval of Amendment No. One to Maintenance and Repair Services Agreement for Landscape Maintenance of Medians and Roadsides with BrightView Landscape Services, Inc. (Contract No. 8651-1) June 27, 2023 Page 3 Looking forward, there are several small-scale landscaping projects on the horizon (e.g. Newport Island Entry Rehabilitation) that will require BrightView's assistance. These types of improvement and rehabilitation needs are expected to stay consistent throughout the remainder of the contract term. The table below shows some of the typical expenditures over BrightView's initial term and the approximate annual cost associated with each. The table is not inclusive of all types of on -call work performed. Typical Expenditures Average Annual Cost Irrigation Repair Parts $90,000 Plant Replacements $105,000 Sod Work $30,000 Traffic Accident Repairs $30,000 Tree Replacements (Accidents and Street Trees) $50,000 Storm and Vandalism Response $70,000 Landscape Enhancements (smaller non-CIP type work) $215,000 In evaluating BrightView's prior work and performance over the past 2.5 years, staff is satisfied with the level of service and value they have provided. Staff also receives many compliments from the public and other departments regarding its maintenance and customer service. Additionally, BrightView's supervisors and field staff have developed detailed working knowledge regarding the intricate landscaped areas that make up the contract. Finally, BrightView management has not requested an increase to the contractor's unit prices, thus there is a value-added benefit with the amendment for additional on -call work. Consequentially, in order to maintain high quality and attractive median and roadside areas, staff is requesting an increase to the fixed -maintenance portion of the contract by $131,750 annually for 4.5 years plus CPI for a total fixed -maintenance NTE amount of $14,869,688-1 and increase the on -call portion of the contract by $2,280,000 for a new on -call NTE amount of $4,380,068. This would raise the total overall contract NTE from $16,350,000 to $19,249,756 for the seven-year term of the contract. FISCAL IMPACT: The adopted and future planned operating budgets include sufficient funding for this amendment. It will be expensed to the following Public Works Department accounts: 7-3 Approval of Amendment No. One to Maintenance and Repair Services Agreement for Landscape Maintenance of Medians and Roadsides with BrightView Landscape Services, Inc. (Contract No. 8651-1) June 27, 2023 Page 4 Contract Services Medians 0108031 811018 Landscape Enhancement 0108031 911008 Contract Services Trees 0108032 811017 Maintenance and Repair Damage 0108031 851014 Maintenance Irrigation Repair 0108031 851038 Oil & Gas Landscape Maintenance 10090907 851026 Utilities Landscape Maintenance 7019052 851026 Neighborhood Enhancement 53601 98000-23P12 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Amendment No. One to Maintenance/Repair Services Agreement 7-4 ATTACHMENT A AMENDMENT NO. ONE TO MAINTENANCE/REPAIR SERVICES AGREEMENT WITH BRIGHTVIEW LANDSCAPE SERVICES, INC. FOR LANDSCAPE MAINTENANCE OF MEDIANS AND ROADSIDES THIS AMENDMENT NO. ONE TO MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. One") is made and entered into as of this 27th day of June, 2023 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and BRIGHTVIEW LANDSCAPE SERVICES, INC., a California corporation ("Contractor"), whose address is 980 Jolly Road, Suite 300, Blue Bell, Pennsylvania 19422, and is made with reference to the following: RECITALS A. On December 1, 2020, City and Contractor entered into a Professional Services Agreement ("Agreement") for annual landscape maintenance services of City medians and roadsides ("Project"). B. The Agreement provides for both fixed services, and on -call services, each subject to a separate not to exceed amount, with up to a 2% per year increase to the fixed services after the first year. C. The parties desire to enter into this Amendment No. One to increase the total compensation available for fixed services to reflect the addition of an Enhanced Landscape Maintenance Lead Worker including corresponding fuel sub -charges for truck and equipment, and additionally, to increase the total compensation available for on -call services due an increase in volume that was not anticipated at the time the parties entered into the Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SERVICES TO BE PERFORMED Exhibit A to the Agreement, Scope of Services, shall be supplemented to include Exhibit A, attached hereto and incorporated herein by reference. Exhibit A to the Agreement and Exhibit A to this Amendment No. One shall collectively be known as "Exhibit A." The City may elect to delete certain Services within the Scope of Services at its sole discretion. 2. BILLING RATES Exhibit B to the Agreement shall be supplemented to include the Schedule of Billing Rates, attached hereto as Exhibit B and incorporated herein by reference. Exhibit B to the Agreement and Exhibit B to Amendment No. One shall collectively be known as "Exhibit B." Brightview Landscape Services, Inc. Page 1 7.5 3. COMPENSATION TO CONTRACTOR Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "4.1 City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.1.1 Contractor's compensation for all fixed Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Fourteen Million Eight Hundred Sixty Nine Thousand Six Hundred Ninety Two Dollars and 00/100 ($14,869,692.00), subject to the annual not to exceed amounts set forth in the following table which is based on the total annual cost for fixed Services set forth in Exhibit B, and includes the possibility of up to a 2% increase in Billing Rates as may be authorized under Section 4.2 of this Agreement (annual values rounded up to the next whole dollar): � Fixed Services Per Year Not To Exceed 2020-2021 $1,916,787.00 2021-2022 $1,955,122.00 2022-2023 $2,060,100.00 2023-2024 $2,168,494.00 2024-2025 $2,211,864.00 2025-2026 $2,256,101.00 2026-2027 $2,301,224.00 Total Not to Exceed for Fixed $14,869,692.00 Services: 4.1.2 Contractor's compensation for all On -Call Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Four Million Three Hundred Eighty Thousand Sixty Eight Dollars and 00/100 ($4,380,068.00), without prior written amendment to the Agreement. 4.1.3 Contractor's compensation for all Services performed in accordance with this Agreement, including all fixed and on -call Services and all reimbursable items, shall not exceed a grand total amount of Nineteen Million Two Hundred Forty Nine Thousand Seven Hundred Sixty Dollars and 00/100 ($19,249,760.00), without prior written amendment to the Agreement." Brightview Landscape Services, Inc. Page 2 7-6 The total amended compensation reflects Contractor's additional compensation for additional fixed and on -call services to be performed in accordance with this Amendment No. One, including all reimbursable items, in a total amount not to exceed Two Million Eight Hundred Ninety Nine Thousand Seven Hundred Sixty Dollars and 00/100 ($2,899,760.00). 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Brightview Landscape Services, Inc. Page 3 7-7 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: ;v / 1 K /> By: on C. Harp IL4.23 wc. City Attorney ATTEST: Date: Leilani 1. Brown City Clerk Attachments CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Mayor Jeff Herold CONTRACTOR: Brightview Landscape Services, Inc., a California corporation Date: By: Jeff Herold Chief Executive Officer and President [END OF SIGNATURES] Exhibit A - Scope of Services Exhibit B - Billing Rates Brightview Landscape Services, Inc. Page 4 7_8 EXHIBIT A SCOPE OF SERVICES Appendix A to Exhibit A of the Agreement, "Minimum Staff Requirements & Location Area Map," shall be supplemented to include the following: At a minimum, contractor shall provide, the additional positions as Work Required Location depicted in the table performed Vehicle below: # Positions Driving, Debris Enhanced Landscape Pick-up, Storm Pick-up Truck: Maintenance — Lead Response, F-150 or equal Citywide Worker Weeding, and Trimming Brightview Landscape Services, Inc. Page 5 7.9 EXHIBIT B BILLING RATES The following shall be supplemental to Exhibit B to the Agreement: Item Rate Quantity per Total per Month Month Enhanced Landscape Maintenance — Lead $30.00 173.3342 $5,200.03 Worker Fuel Sub Charges for Truck $5,779.14 1 $5,779.14 & Work Equipment Total Additional Monthly Fixed $10,979.17 Maintenance Brightview Landscape Services, Inc. Page 6 7-10